Saturday, January 1, 2011
Incubator Bank/Third-Class Politicians Only Provide the Third-Rate Policy-XV
Few people know the name of the Incubator Bank in Japan. In 2004, the bank was established by Kimura Takeshi, a former Bank of Japan official and key adviser to financial services minister Takenaka Heizo during the Koizumi Junichiro Administration. Takenaka approved the establishment of the Incubator Bank. The purpose of the bank was to offer loans to small and midsize firms at interest rates slightly higher than what large banks charged without requiring security (Japan Times 18 September 2010). After large banks began to provide loans to small and midsize firms, the Incubator Bank experienced difficulties. Eventually, the Incubator Bank started buying loans claims held by SFCG Co., which entered bankruptcy. By August, the Incubator Bank had 180.4 billion in liabilities in excess of its assets. In July, both the former chairman of the bank, Kimura Takeshi and the President of the bank, Nishino Tatsuya, were arrested on suspicion of obstructing an audit of the bank by the Financial Services Agency. On 10 September 2010, the Incubator Bank announced that it was filing for bankruptcy protection. It is first time in Japanese history that the government invoked the limited deposit protection plan which was introduced in 1971. Under the plan, deposits of up to 10 million, plus interest will be refunded. As of September 10, about 3,423 people (2.7%), having a total of approximately 1.1 billion at the bank, will not get full refunds since they deposited more than 10 million yen (Japan Times). Who will pay refund this money? Kimura? Takenaka? or/and Koizumi?
Labels: Third-Class Politicians
After growing up and studying in China and Japan, Dr. Suganuma went to the U.S. for graduate studies, earning master’s degrees at both St. John's University (in Chinese studies) and Syracuse University (in international relations) as well as a Ph.D. (in geography) from the Maxwell School of Syracuse University.